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Pick a monopolistically – competitive market of your choice. Identify any 3 factors through which firms...

Pick a monopolistically – competitive market of your choice. Identify any 3 factors through
which firms in that market can differentiate themselves from rival firms.

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Answer #1

Monopolistically competitive market will be of RESTURANT

3 factors through which they differentiate themselves from rival firms-

  • Product differentiation - Product differentiation is the main factor through resturants differentiate from other rival restuarants
  • Low barriers to entry - the barriers to entry is relatively low in the restaurant market
  • Price and quality - In restuarants they also compete with each other on the basis of quality of food as well as the price of foods
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